This was a key message from a high-level session held on April 1 on the sidelines of the 58th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, under the theme “Financing for Innovation: The Role of African Multilateral Financial Institutions in Accelerating Africa’s Technological and Economic Transformation.”

The session brought together senior representatives from governments, African multilateral financial institutions, and development partners to examine how to mobilize long-term, affordable capital for digital infrastructure, artificial intelligence, and innovation-led sectors—critical drivers of productivity, job creation, and structural transformation.

Despite the rapid expansion of Africa’s digital economy, participants underscored that access to affordable, long-term financing remains a binding constraint.

High costs of capital, limited risk-sharing mechanisms, currency risks, and insufficient early-stage financing continue to inhibit investment in digital infrastructure and innovation ecosystems. These challenges are further compounded by gaps in project preparation and the limited availability of bankable investment opportunities.

Opening the session, Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa, emphasized:

“Africa’s innovation challenge is not a shortage of ideas, but a shortage of long-term, affordable, and well-structured financing. Addressing this will be critical to unlocking productivity, job creation, and structural transformation across the continent.”

Participants highlighted the need to address the disconnect between capital availability and actual investment in innovation-driven sectors.

Haytham Elmaayergi, Executive Vice President-Global Trade Bank at African Export-Import Bank, noted:

“One of Africa’s key challenges is not a lack of capital, but a shortage of bankable projects and stronger institutional collaboration to scale investment.”

Strengthening project preparation, improving pipeline development, and deepening coordination across institutions were identified as key priorities to unlock large-scale financing.

Participants also emphasized the need to adapt financing approaches through blended and risk-sharing structures, combining guarantees, advisory, and capital mobilization to better align with the risk-return profiles of technology and innovation-driven sectors.

Adeniran Aderogba, President and CEO of Regional Maritime Development Bank, stated:

“In the technology space, risk is harder to structure. We need more creative financing models and dedicated funds to support early-stage innovation.”

The discussion highlighted the need for expanded use of tailored financial instruments including blended finance, co-financing mechanisms, and dedicated innovation to support the full lifecycle of innovation from early-stage development to scale.

The session also underscored that financing innovation must go hand in hand with investments in enabling infrastructure and systems.

Robert Lisinge, Director of Technology, Innovation, Connectivity and Infrastructure at ECA, noted:

“Technology and innovation go beyond digital. We are talking about a broader ecosystem—including infrastructure, energy, and emerging technologies—all of which require significant investment.”

Participants emphasized the importance of strengthening regulatory frameworks, digital infrastructure, and innovation ecosystems to enable scalable and sustainable investment.

The session concluded with a strong call to move beyond traditional financing approaches toward more coordinated and practical solutions that can:

• Reduce financing costs for digital and innovation sectors
• Expand risk-sharing and co-financing mechanisms
• Strengthen project preparation and pipeline development
• Mobilize long-term capital at scale
• Enhance collaboration among African institutions and partners

Organized by the Alliance of African Multilateral Financial Institutions and partners, the session forms part of ongoing efforts to strengthen Africa’s financial architecture and position African multilateral financial institutions at the center of financing the continent’s digital and economic transformation.